Gary Humphries (ACT, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services, Senator Ellison. It concerns the cost of child care. Would the minister inform the Senate of how Centrelink is delivering on the Howard government’s promise to assist Australian families with the cost of child care? Is the minister aware of any alternative policies?

Chris Ellison (WA, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Centrelink and the Family Assistance Office are at the forefront of delivering the great benefits that we are providing to families, particularly working families, in relation to the cost of child care. Child care is of course a very important issue for Australian families. It affects around 700,000 families. Over the next four years, the Howard government is planning to spend some $11 billion on supporting families with child care. These initiatives are very important. The opposition has said much about the plight of working families. This is a very important initiative addressing the situation of Australian families.

There will be two significant changes to childcare benefits and rebates. Firstly, there will be a one-off increase of over 13 per cent to the value of childcare benefits from 1 July this year. As an example, this will see the maximum rate of childcare benefits increase for one child from $148 to $168.50 per week for full-time care. This means that, on average, a low-income family with one child in long day care will receive an increased benefit of $20.50 per week. The second measure relates to the childcare tax rebate. This will involve two payments this year to families that are eligible. There is the old system where payment was delayed and, in effect, you claimed your childcare tax rebate just under 18 months after the period that you paid for it. We have brought this forward to be eligible for payment the September after the financial year in which those payments were made. So this year the tax office is providing a rebate for the financial year 2005-06 and that is going out now to Australian families. But, in addition to that, the new system also kicks in, so from September onwards the Family Assistance Office will be making childcare rebate payments for the 2006-07 financial year. Thereafter, those payments will be made in the September after the financial year. We have cut in half the waiting time for Australian families for that rebate. That is a big plus for those ordinary working families who are eligible for a childcare rebate.

The new system will be streamlined. The payment of childcare benefits will be made by the Family Assistance Office mostly by electronic means to the bank accounts of families. That will see a streamlining of payments. I am not sure that the opposition thinks this is a big deal but I am sure that the average Australian family would think it is a pretty good idea to streamline payments and bring them forward. We are talking about around 700,000 ordinary working families in Australia who stand to benefit from increased payments, from more efficiency and from getting that benefit earlier. This is in stark contrast to when Labor was in power. When we came into government we increased by three times the benefits payable for child care compared to the previous Labor government. That is a track record that we are proud of. We will continue to deliver benefits to Australian working families.